Verve Therapeutics Insider Purchases Yet To Pay Off Regardless Of Recent Strength

Some of the losses seen by insiders who purchased US$475.8k worth of Verve Therapeutics, Inc. (NASDAQ:VERV) shares over the past year were recovered after the stock increased by 24% over the past week. The purchase, however, has proven to be a pricey bet, with losses currently totalling US$51k.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for Verve Therapeutics

Verve Therapeutics Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by President Andrew Ashe for US$476k worth of shares, at about US$6.26 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$5.59). It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Andrew Ashe was the only individual insider to buy during the last year.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

Verve Therapeutics is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Verve Therapeutics insiders own 5.3% of the company, worth about US$25m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Verve Therapeutics Insiders?

It doesn't really mean much that no insider has traded Verve Therapeutics shares in the last quarter. However, our analysis of transactions over the last year is heartening. Insiders own shares in Verve Therapeutics and we see no evidence to suggest they are worried about the future. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. To help with this, we've discovered 4 warning signs (1 is concerning!) that you ought to be aware of before buying any shares in Verve Therapeutics.

Of course Verve Therapeutics may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.